Back on January 12th, I decided to test Capitalise.ai. If you’re not familiar with Capitalise.ai, it’s a powerful tool for traders and investors and allows to automate the trading based on a pre-defined trading strategy.
You can use Capitalise.ai for Crypto automated trading and CFDs trading – Stocks, Forex, Indexes, and Commodities.
They currently offer connections to FTX, FXCM, Binance, InteractiveBrokers, Eightcap, ErisX, and the list is expanding.
You can build your own strategy based on various rules and limit it by time and you can find quite a few strategies (I see over 160 crypto strategies) created by other traders. You can also see them by ranking and you see if the strategies were part of a competition and how they ranked. Very useful! You don’t need to invest your own capital, you can let the automated strategy run on a simulation just to get an idea of how it works.
I decided to dig deeper and go through some of those. I found one which I decided to test. It’s #4 April 2021 Competition Strategy by the user with username Mecman.
It has very simple rules.
As you can see, the rules applied are straightforward. And as always, there is no need to overcomplicate things, and usually, the most straightforward strategies work well.
I started the simulation on 1/12/2022 at 2:13 PM.
Since then, the strategy has made 296 trades. It has approx. 50% success rate – 115 trades were winning, and 117 trades were losing.
The start wasn’t great. There were quite a few losses, especially when the crypto market started tanking in the middle of January. However, once the market settled and volatility came in, the strategy has started to show some good results.
After a month and a bit, the return on the simulation account is 22.16%. It’s fair to say that is better than I expected for a strategy with such simple rules. Definitely impressed by it and credit goes to user Mecman for creating it.